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5 SUMMARY In this chapter we introduced structural equation modeling by describing ebasic types of variableslatent, observed, independent, and dependentand basic types of SEM models regression, path, confirmatory factor, and structural equation models. In addition, we gave a brief history of structural equation modeling and a discussion of the importance of SEM. The chapter concluded with information about where to obtain the structural equation modeling software programs used in the book. In chapter 2 we consider the importance of examining data for issues related to measurement level (nominal, ordinal, interval, or ratio), restriction of range (fewer than 15 categories), missing data, outliers (extreme values), linearity or nonlinearity, and normality or nonnormality, which affect all statistical methods, and especially SEM applications. EXERCISES 1. Define the following terms: a. Latent variable Latent variable: an unobserved variable that is not directly measured, but is computed using multiple observed variables. b. Observed variable Observed variable: a raw score obtained from a test or measurement instrument on a trait of interest. c. Dependent variable Dependent variable: a variable that is measured and related to outcomes, performance or criterion. d. Independent variable Independent variable: a variable that defines mutually exclusive categories (e.g., gender, region, or grade level) or, as a continuous variable, influences a dependent variable. 2. Explain the difference 2. Explain the difference between a dependent latent variable and a dependent observed variable.

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A dependent latent variable is not directly measured, but is computed using multiple dependent observed variables. A dependent observed variable is a raw score obtained from a measurement instrument or assigned to a criterion variable. 3. Explain the difference between an independent latent variable and an independent observed variable. An independent latent variable is not directly measured, but is computed using multiple independent observed variables. An independent observed variable is a raw score obtained from a measurement instrument or assigned to an attribute variable. 4. List the reasons why a researcher would conduct structural equation modeling. a. Researchers are becoming more aware of the need to use multiple observed variables to better understand their area of scientific inquiry. b. More recognition is given to the validity and reliability of observed scores from measurement instruments. c. Structural equation modeling has improved recently, especially the ability to analyze more advanced statistical models. d. SEM software programs have become increasingly user-friendly 5. Download the student versions of Amos, EQS, and LISREL from the websites given in this chapter. a. Amos: http://www.smallwaters.com/ b. EQS: http://www.mvsoft.com/ c. LISREL: http://www.ssicentral.com/

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